A micropayment provider based on distributed ledger technology (DLT) was added to the U.S. instant payment platform FedNow as a service provider.
The Fed officials added Dropp Inc., which operates on the DLT platform Hedera Hashgraph to the list of service provider partners of its FedNow instant payment system. The information about it appeared on FedNow’s official website.
Dropp Inc. is a micropayment platform. According to the information on FedNow’s website, the digital solution will allow merchants to accept payments with minimal costs and reduce commission costs by utilizing DLT.
However, despite the company’s addition to the list of providers, support for the blockchain system is only hypothetical. That is, the information provided serves only “as a convenience to potential participants in the FedNow Service.” FedNow representatives emphasize that they don’t officially support any of the presented providers. Some blockchain networks were previously added as FedNow service providers, but information about them was removed from the website a few days after they were added.
The FedNow service was officially launched on July 20 with the support of 35 financial institutions and 16 service providers. The crypto community continues to criticize FedNow, equating the system to a CBDC issue that could potentially threaten the freedoms of Americans.
